Assignment 2: You Are an Investment Analyst

Assignment 2: You Are an Investment Analyst
Due Week 10 and worth 320 points

As the CFO of your corporation, you are in charge of preparing and analyzing financial statements that will be presented to potential investors and creditors. However, before you can present the financial statements to investors and creditors, you need to prepare the financial statements with supporting analysis. Select one (1) pair of the following companies to conduct your financial statement analysis.
• Pepsi versus Coca Cola, or
• Amazon versus eBay

Write an eight to ten (8-10) page paper in which you:
1. Analyze each company’s history, product / services, major customers, major suppliers, and leadership, and provide a synopsis of each company.
2. Identify three (3) profitability ratios that creditors may be interested in. Calculate the ratio for each company, and prepare a report to summarize your findings on the financial health of each company. Also, recommend to management the manner in which they can improve each of the three (3) ratios identified.
3. Summarize at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2012 to the present day, and analyze the impact that these events had on each company’s financial statements. Indicate the primary way in which the merger, acquisition or political issues influence potential investors’ and creditors’ perception of both companies.
4. Analyze each company’s income statement over the past two (2) years, and determine which company outperformed the other. Suggest a way in which the lagging company can improve its income. Support your suggestion with a specific analysis.
5. Analyze each company’s balance sheet. Prepare a vertical analysis for each company, interpret the results, and write a financial report. Also, suggest the manner in which the company that is not…...

...Assignment 3: You Are an Investment Analyst
Courtney Boone
ACC 557- Financial Accounting
Professor Wendy Achilles
December 16, 2012
Pepsi Co History
Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy.
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race." The advertising theme "Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again.
In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy – in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Megargel was unsuccessful,......

...You Are an Investment Analyst;
Pepsi versus Coca Cola
Renee Cole
Dr. Tim Creel
December 16, 2012
A closer look at PepsiCo and Coca Cola
PepsiCo
Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Then in 1965 Pepsi-Cola and Frito-Lay merged to create PepsiCo(No author, 2012). According to No author(2012) PepsiCo operates in the consumer goods sector and produces a variety of foods and drinks to include Lays and Ruffles potato chips, Doritos, Cheetos, Quaker oatmeal, Aunt Jemima mixes and syrups, Quaker grits, Cap n Crunch, Quaker rice cakes, beverage concentrates, fountain syrups, and finished goods under Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, ready-to-drink tea, coffee, and brands licensed from Dr Pepper Snapple. PepsiCo’s major customer is Wal-Mart holding 12% of sales (Nooyi, 2010). Major suppliers include E2M who specialize in packaging and manufacturing consulting and SHI International a regional reseller and global IT provider (Freeman, 2010). No author (2012) stated
The president of PepisiCo is
Zein Abdalla Indra and Nooyi is Chairman and Chief Executive Officer of PepsiCo, a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. PepsiCo’s main businesses – Quaker, Tropicana,......

...You Are an Investment Analyst
Jennifer Nixon
Financial Accounting
Accounting 557
June 16, 2013
Dr. Alfred C. Greenfield, Jr.
Introduction
In this paper, I am a representative from Beacon Consulting and Accounting Services. I will be performing a complete evaluation of the Pepsi and Coca Cola companies. I’ve been assigned to complete a stock market analysis that will be presented to a client as part of a professional consultation process. Background information for both companies will included in the analysis in order to provide a summary of each company. Another part of my analysis will include the examination of stock trends for both companies as well as the stock trends that will be based from the initial public offering day to January 1, 2012. I will also display current events that are surrounding both companies to better assist in the analysis. Finally, the financial statements of each company will be analyzed. After all of the information has been gathered, it will be reviewed in order to make a recommendation as to which company will be the best investment opportunity for the client.
Analyze each company’s history, product / services, major customers, major suppliers, and leadership and provide a synopsis of each company.
Coca Cola was founded in 1886, John Pemberton invented the first prototype of soda. Over a century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup. The company is the world’s leading manufacturer...

...both the organizations are carrying out their activities appropriately.
Review of Financial Data
The organizational financial data can be said to be appropriate in the situation when, the organization will have its data audited through one of the major auditors around the world. Both the organizations can be said to be providing proper financial data to its shareholders. The auditor of the organization PepsiCo are KPMG LLP. On the other hand, there is also a situation that, the organization Coca Cola is also having its accounts audited by one of the major auditors around. In this way, it can be said that, both the organizations are having reliability in their financial statements to a proper level.
Recommendations for Investment
In order to make an investment in a particular organization, it is necessary for the investors to make sure that, the investors consider certain key things. The points to be considered by the investors include earning per share, net income and trend in movement of the price of the security of the organization (Pogue, 2010). The price of the stock of the organization Coca Cola Company is $37.67 whereas, the price of stock of PepsiCo is $70.27. This shows that, Pepsico has a better stock price in comparison to Coca Cola. The earnings per share of PepsiCo is $3.76 whereas, the earnings per share of Coca Cola Company is $1.91. PepsiCo has net income of $6443000 whereas, Coca Cola Company has net income of $8572000. In this way, it can be said that,......

...You Are an Investment Analyst
Accounting Management
ACC 557
December 10, 2012
Analyze each company’s history, product / services, major customers, major suppliers, and leadership and provide a synopsis of each company.
Pepsi-Cola began as a drink developed by a pharmacist named Caleb Bradham in his drugstore in 1893. The soft drink was made to be a tonic to aid in digestion and as a refreshing drink that gives an energy boost. This concoction made of pepsin and kola nuts was originally called “Brad’s Drink” named after its inventor, but was later changed to Pepsi-Cola to be more marketable. Originally, this beverage was sold in drug stores and at soda fountains, but was later sold in bottled form to facilitate mass distribution. The Great Depression was a major setback for many American companies and there was no exception for Pepsi. However, the company strived to remain strong and offered its product for five cents in the mid thirties while touting that their product offered twice as much for half the price of Coke’s product. During this time their ad campaigns and marketing tactics worked and their company continued to remain profitable despite a harsh economic climate. Pepsi marketed its products to virtually everyone, young and old, but they often utilized creative marketing tactics to entice new customers to try their products. In the mid 1940’s Pepsi began a marketing campaign to gain more popularity with African American customers whom the company...

...Assignment 2: Operations and
Long –Term Investment Decision
Joanne T. Johnson
Eco 550
March 20, 2014
Professor Jae – Kwang Hwang
Operations and Long –Term Investment Decision
Introduction
The grocery market is filled with various options for microwavable food depending on the preferences of the consumers. Instead of the traditional use of the oven many families now use the microwave because of their busy lifestyles. The variety of healthy low calorie -microwave food has made shopping much easier for today’s busy consumer. Low calorie labels are regulated by the Food and Drug Administration (FDA) and require food “labels claiming low-calories must not have more than 40 calories for a given reference amount (except sugar substitutes)”. (The Calorie Control Council, 2014)
Healthy low-calorie microwave foods have come a long way since the first Swanson pre-packaged TV dinner in the 1950’s. The meal tray was heated in the oven and consisted of a small portion of meat, two vegetables and dessert. The top two competing manufacturers of microwavable low-calorie foods are Lean Cuisine owned by Nestle and Healthy Choice owned by ConAgra. Both leaders in the frozen food market began in the 80’s. Healthy Choice works rigorously with the FDA to assure foods qualify under government health standards for healthy low calorie foods. Like all businesses these two businesses need a financial business plan that allows them to assess the company’s results and set targets for......

...Assignment 3: You Are an Investment Analyst
Strayer University
ACC557: Financial Accounting
Prepared for: Dr. Timothy Creel
March 17, 2014
Abstract
Organizations around the world have a lot of share in the market. These organizations aim to make sure that they work in a manner where they have a competitive advantage within the market they serve. The analysis of this paper will be based on two organizations, Pepsi and Coca Cola. Here, in the present paper, various information will be considered. The information will include company history, products and services, customers and suppliers, leadership, stock prices, the impact of news events on stock prices, and an overall financial analysis.
Pepsi versus Coca Cola History
Pepsi is an American multinational corporation which is engaged in the beverage and food industry. It was originated in 1893 by a young pharmacist named Caleb Bradham who experimented combinations of juices, syrups, and spices to create a new refreshing drink for customers. His unique mixture of kola nut extract, vanilla and rare oils became popular and customers named it Brad’s drink. Caleb decided to rename it to Pepsi-Cola and began advertising his new soft drink. In 1902, he applied to the U.S. Patent Office for a trademark. Pepsi was first sold through soda fountains until Caleb recognized a greater opportunity existed to bottle Pepsi for people to drink anywhere. People responded, sales began to grow, convincing him to form a company......

...Assignment 2: You Are an Investment Analyst
Due Week 10 and worth 320 points
As the CFO of your corporation, you are in charge of preparing and analyzing financial statements that will be presented to potential investors and creditors. However, before you can present the financial statements to investors and creditors, you need to prepare the financial statements with supporting analysis. Select one (1) pair of the following companies to conduct your financial statement analysis.
• Pepsi versus Coca Cola, or
• Amazon versus eBay
Write an eight to ten (8-10) page paper in which you:
1. Analyze each company’s history, product / services, major customers, major suppliers, and leadership, and provide a synopsis of each company.
2. Identify three (3) profitability ratios that creditors may be interested in. Calculate the ratio for each company, and prepare a report to summarize your findings on the financial health of each company. Also, recommend to management the manner in which they can improve each of the three (3) ratios identified.
3. Summarize at least two (2) news events (this may include mergers, acquisitions, or political issues) that occurred from 2012 to the present day, and analyze the impact that these events had on each company’s financial statements. Indicate the primary way in which the merger, acquisition or political issues influence potential investors’ and creditors’ perception of both companies.
4. Analyze each company’s income statement over the......

...Marriott International Vs Hilton Worldwide
As an employee of Marriott International, this assignment gives us the opportunity, to compare the company I work for to our competitor Hilton Worldwide. Both companies are the largest ever in the hospitality industry around the world, and both are growing faster than ever.
Company’s history
The Marriott was founded in 1927. All began with an A&W root beer stand a family owned business in Washington, D.C. Founder J.Willard and his wife Alice, got their young business by quenching people’s thirst during Washington DC‘s hot, muggy summers. Then The Marriotts add hot food items to their menu and the name “Hot Shoppes was born (International, 2014). Today, with his headquarter based in Bethesda, Md., Marriott operates more than 4,087 properties in over 80 countries and territories around the world, over 697,000 rooms under 16 brands including Courtyard, Renaissance and Ritz-Carlton; more than 800 new Marriott-operated properties are in the works worldwide. Founded by J. Willard Marriott, the company is now led by President and Chief Executive Officer Arne Sorenson and J. Willard Marriott's son, J. W. Marriott, Jr. is the Executive Chairman.
19
1111119 Hilton International began around 1919, when Conrad Hilton bought The Mobley, a hotel in Cisco, Texas. Mr. Hilton had greater ambitions, over the next few years; he added other Texas hotels in his assets. In 1943, with the purchase of the Roosevelt and Plaza hotels in New York......

... And while the customers are patiently waiting for a great burger, Five Guys offer an unshelled peanut, which has become their famous trademark. Five guys being a fast-food restaurant does what other restaurants offer. They send secret shoppers twice a week to every location, and the family is traveling constantly, visiting every store. By sticking to the basics, five Guys leaves their food print embedded in what others have strayed away from, keeping it simple.
Analyze the original values for the start-up company and how it remains strong today.
Five Guys believe in basic values and remaining basic helps a person travel along way. We figured our best salesman is our customer. Treat that person right, he’ll walk out the door and sell for you. (Income.com, 2010). Five guys believe that word of mouth is the best advertising, and most companies find this to be accurate. Five guys belief is the way they select their potatoes. Their potatoes are from Idaho in which eight percent of the Idaho baking crop. Five guys get their potatoes grown north of the Forty-Second parallel, which is a pain in the neck (Inc.com, 2010). With their vast selection, but not very cost effective, this assures that the customer is getting a quality potato at the company’s expense. By using different methods in storing their food, Five Guys have mastered a technique in preparing quality fries. Even though Five Guys is now a franchise, they still follow the same pattern since 1986m which remains in......

...Assignment 2: You Are an Investment Analyst
Student Name
Prof Name
ACC557
Strayer
2015
Introduction:
World is occupied by a lot of businesses working around it. Out of them little arable to get that much fame that they are known by every single living being around the world. In this paper, we are going to make a comparison of such two beverage giants which are famous all around the Globe. One of them is PepsiCo and other is Coca-Cola. Both of them are operating in the beverage industry and are considered to be the leaders of it. Collectively, both of them are able to grab around more than half of the beverage market share across the globe.
Description of PepsiCo
PepsiCo Inc. was established in 1965, it was a merger of 2 companies called Pepsi-Cola and Frito-Lay. Pepsi-Cola was formed in 1890s by a pharmacist New Bern.
Pepsi is considered to be one of the largest consumer trading companies operating all around the word. Currently it is operating in more than 200 countries of the world. Based on the ranking of......

...National Collegiate Athletic Associations (NCAA). (Datamonitor)
Reebok, is second highest in sales behind NIKE and operates 142 concept stores and 228 factory outlets. (Datamonitor) Its strong presence in the advertising arena has enabled Reebok to advance its image amongst consumers. As with NIKE Inc. the athletic footwear competition is very aggressive and can pose potential threats to companies such as NIKE and Reebok; however, continuous R&D on quality and innovation continue to make the two top competitors topline forces in their market.
Profitability Ratios
Every successful company tend to seek out key investors to fund their business ventures. Investors are interested in companies that can yield a greater return on their investment; therefore, they review the profitability of a company by conducting a method known as ratio analysis. Some of the key ratios examined are gross profit margin which indicates the percentage of revenue available to cover operating and other expenditures; net profit margin, which is an indicator of the profitability of the company; and the return on assets ratio, which measures the efficiency of how assets are used for sale generation.
NIKE, Inc. Profitability Ratios 2015
Gross Profit margin: 45.97% (Gross profit of 14,067 million/30,601 million in revenues * 100).
Net Profit margin: 10.70% (Net income 3,273 million/Revenues 30,601 million * 100)
Return on assets: 15.15% (Net income 3,273 million/total assets 21,600......

...Assignment 1: Discussion—Biomes, Development, Pollution, and You
Each part of the United States has at least one ecological crisis based on location, biome, and industrialization pattern. For example, the Midwest was once a prairie with very fertile soil. However, when people realized that with the right watering and drainage system this area could become productive farmland, there arose ecological problems. The conversion of the prairie to farmland is the root cause of many ecological problems in this region.
Regardless of what biome you consider, humans have likely had an impact on the ecology of that area.
For this assignment, identify the biome in which you live. The following are a few examples of biomes:
* Temperate forests: The temperate forests have variable temperatures, high moisture levels, and higher species diversity.
* Taigas: These biomes have colder average temperatures, lower moisture levels, and lower species diversity.
Using the readings for this module, the Argosy University online library resources, and the Internet, respond to the following:
* Explain how humans have impacted the biome in which you live. List the types of environmental damage that have been caused and the species that have been impacted.
* I live in Georgia, in the deciduous forest area. Human have impacted this biome as people continue to cut down the trees. We rely on trees since they provide oxygen for all living species.
* Describe the major pollution......